What's Happening?
Almonty Industries has completed phase one commissioning at the Sangdong Tungsten Mine in Gangwon Province, South Korea, marking the resumption of production after more than 30 years. The mine, which ceased operations in the early 1990s due to a downturn
in commodity prices, has been redeveloped with an investment of over $100 million. The processing plant is now operational, handling approximately 640,000 tonnes of ore annually and producing an estimated 2,300 tonnes of tungsten concentrate. The mine is expected to have a lifespan of over 45 years, with an average ore grade of 0.51% tungsten trioxide. Almonty plans a phase two expansion by 2027 to double the processing capacity and tungsten output.
Why It's Important?
The reopening of the Sangdong Mine is significant for diversifying the supply chain of critical minerals away from China, which currently dominates the global tungsten market. This development aligns with strategic efforts by the U.S. and its allies to secure alternative sources for essential materials. The mine's output is projected to meet about 40% of the tungsten demand outside China, reducing dependency on a single supplier and enhancing economic security. This move could also influence global tungsten prices and supply dynamics, impacting industries reliant on this mineral.
What's Next?
Almonty Industries will focus on optimizing throughput and advancing toward full commercial production. The phase two expansion, set for completion by 2027, aims to increase the mine's processing capacity to 1.2 million tonnes of ore annually. This expansion will further bolster the mine's contribution to the global tungsten supply. Stakeholders, including governments and industries dependent on tungsten, will likely monitor the mine's progress and its impact on the market closely.
